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Penny Share Review 228

Monday 29 March 2004

The Daily Telegraph on Saturday noted Albidon's (ALD) listing in Australia on Friday, after its listing on AIM on Thursday. The shares were unchanged at 26.50p from Friday's close at 10.41.

Chelford's (CHR) final results make it into the small cap section of the weekend's FT. Losses were cut and it has continued to win business in a thin market and its broker Arbuthnot upgraded its profit forecast for this year, before goodwill amortisation, from £800,000 to £900,000. At 10.42 the shares were down by 0.28p, from Friday's close to 2.08p.

The Guardian from Saturday picked up on whispers in the market that Earthport (EPO) has two contract announcements up its sleeve and is set to appoint Bridgewell as its new corporate broker. The Company actually announced the appointment of Bridgewell this morning (see the link below). The shares were unchanged at 3.00p from Friday's close at 10.42.

Word of a discounted fundraising by Energy Technique (ETQ) appeared to have leaked out over the weekend. Saturday's Guardian reported that Evolution Beeson Gregory was putting the finishing touches to "an emergency £3m fundraising at 4p-a-share". The Company confirmed this to the market on Monday morning, however, the new money is to be used to fund and develop the Air Treatment Division, so it is expansion rather than consolidation as the Guardian suggested. (See the link below for more details). At 10.43 the shares were down 1.50p from Friday's close at 5.75p.

Edmund Jackson of the Sunday Telegraph on Sunday tips Honeygrove (HYG) and points out that since RAB Capital's special situations hedge fund is effectively locked in, 'the medium-term rationale ought to be attractive'. The shares were up by 1.50p from Friday's close to 12.75p at 10.43.

Legendary Investments (LEG) was featured in the Independent today, which wrote that it was on the hunt for deals. The newspaper says that, according to a company source, the Group, which has a 5% holding in Accessory People, estimated to be worth £200m, is looking to get involved in early stage ventures and IPOs and is particularly interested in being involved in the security and defence sectors. At 10.44 the shares were up by 0.08p from Friday's close and stood at 0.75p.

Mean Fiddler Music Group (MEF.L) was one of the weekend's FT 'Stars' following the move into the digital world with an online venture with Warner International, BMG and V2. The new offering will allow fans to download live recordings and Mean Fiddler are said to be in discussions with other major recording companies like EMI and Sony. The newspaper reckons that the shares, which have quadrupled in a year, should get a further boost from an upcoming Usher tour and the summer's Glastonbury, Reading and Leeds festivals. At 10.45 the shares were trading at 50.50p, up 2.00p from Friday's close.

Today's FT mentions the price increase in the shares of Namibian Resources' (NBR) from its opening price of 15p to 20p by the end of the week, after the offer of 13.3m shares were oversubscribed. The shares were down 1.25p from Friday's close and stood at 18.75p at 10.45.

Netcall (NET) is featured in the 'AIM Investor' column in the Business (28/29 March 2004), which points out that the significance of the recently won BT contract, giving the Company an established route to market. The financial newspaper mentions the house broker Evolution Beeson Gregory's expectations of positive earnings in 2005, after a current year of losses, but writes "prospective earnings of 0.3p next year, mean the shares trade on nearly 90 times future income, so they seem well up with the events for the moment". At 10.46 the shares were down 0.25p from Friday's close at 26.50p.

Talk of nationwide expansion by Paramount (PMN.L) is reported in The Independent on Sunday. This move, according to the paper comes on the back of having poached a new chief operating officer from rival restaurant group ASK Central. Philip Wickens, was managing director at the ASK-owned Zizzi restaurant chain and part of the attraction was his experience in building up this chain from initially two outlets in London to 54 sites nationwide. He will also strengthen Paramount's board. His appointment was confirmed this morning, along with the interim results (see link below). At 10.43 the shares were up 2.50p from Friday's close at 28.50p.

Today's Independent tips TripleArc (TPA), saying 'things look to be coming together nicely' and that the stock was 'undervalued'. The newspaper believes that it should 'easily break into the black' during the current year and 'major contract wins are set to start coming in thick and fast'. Moreover, according to the Independent, the broker Canaccord forecasts that revenues could soar from £20m to £55m by the end of this year and then rise to £62m in 2005, possibly generating about £4.5m of free cash flow. The shares were unchanged at 14.50p from Friday's close at 10.47.

The Independent from Saturday reported on market gossip that Virotec (VTI) was on the verge of winning a major contract from Australia. At 10.47 the shares were up 0.75p from Friday's close at 21.75p.

Announcements

The following companies, in which City Equities customers may have an interest, released announcements to the market this morning. These can be found by entering the relevant company name or ticker code in the search box on this site.

Cheerful Scout (CLS) - Company awards.
Earthport (EPO) - Change of Adviser.
Elite Strategies (ETS.L) - Interim Results, Disposal.
Energy Technique (ETQ) - Final results.
Eurovestech (EVT.L) - Investor Presentation.
Fulcrum Pharma (FUL.L) - Preffered Supplier Agreement.
Intellexis (ILX.L) - Issue of equity.
Oak Holdings (OAH.L) - Final Results.
Oxford BioMedica (OXB.L) - Research Update.
Paramount (PMN.L) - Interim results.
Scipher (SIP.L) - Contract and trading update.
Sopheon (SPE.L) - Contract win.
TripleArc (TPA) - Contract win.
Warthog (WHOG.L) - Director change.
Wigmore Group (WGT.L) - Contract win.

Look out for this week

Mon, 29 Mar - Elite Strategies (I), Oak Holdings (F), Paramount (I).
Tue, 30 Mar - Advanced Medical Solutions (F), Mears (F).
Wed, 31 Mar - Envesta (I)
Thr, 1 Apr - Alizyme (F).
Fri, 2 Apr - nothing of note scheduled.

The next Penny Share Review will be posted on Monday, 5 April 2004.

Compiled by Andrew McLintock

Penny Shares Online - penny shares research and information service.




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There is an extra risk of losing money when shares are bought in some smaller companies including 'Penny Shares'. There is a big difference between the buying price and the selling price of these shares. If they have to be sold immediately, you may get back much less than you paid for them or you may have difficulty in selling them. Past performance is not a reliable indicator of future results. The price may change quickly and it may go down as well as up. You could lose every penny put into a particular share.

The information contained above has been compiled from documented sources which are believed to be reliable but, due to their very nature, are subject to a degree of historical inaccuracy and have not been independently verified and cannot be guaranteed. The pages on this website are provided for information only. City Equities Limited will not accept responsibility for loss incurred by any person or body acting, or refraining from acting, as a result of information and/or opinions given anywhere on this website. Issued by City Equities Limited, Aldermary House, 10-15 Queen Street, London, EC4N 1TY. Registered in England. Registered No. 2742847. Registered Address: Amwell House, 19 Amwell Street, Hoddeson, Herts. EN11 8TS. City Equities Limited is Authorised and regulated by the Financial Services Authority. Registration No. 155051.